Meritain Health Acquires CBSA PERFORMAX
Acquisition Creates Nation's Largest Privately Held Manager of Health
AMHERST, N.Y., Dec. 5 /PRNewswire/ -- Meritain Health, Inc., a leading provider of health plan management services and a division of health care services company Prodigy Health Group, has announced the acquisition of CBSA PERFORMAX. The acquisition doubles the size of Meritain Health, creating the nation's largest privately held manager of health benefits plans. Financial terms of the transaction were not disclosed. The combination of Meritain Health and CBSA PERFORMAX brings together two companies that are passionately dedicated to helping employers control the long-term cost of health care while providing superior customer service and flexibility. The combined company will operate under the Meritain Health name and maintain CBSA PERFORMAX's presence in Baltimore and Minneapolis, as well as its regional sales and service offices. In total, the combined company has offices throughout the country, over 1,350 employees, 1,400 clients and over a million members nationally. The announcement reflects the considerable consolidation underway in the healthcare services industry. It follows Meritain Health's August 2006 acquisition of Weyco, Inc., a third party medical benefits administrator, as well as the merger between Corporate Benefit Services of America (CBSA) and PERFORMAX, also in August 2006. Elliot Cooperstone, CEO of Prodigy Health, said, "This acquisition is an important step as Meritain Health pursues its continuing strategy of controlled expansion through acquisition and the delivery of innovative products and services. Meritain Health and CBSA PERFORMAX each have a terrific history of providing intimate, local service while building capabilities on a national scale to ensure our clients have access to the most compelling products and services available. Together we will build on that legacy." Jacob L. Canova, President and CEO of CBSA PERFORMAX, will become Chairman and CEO of Meritain Health. Mr. Canova said, "We are pleased to bring together the very talented management teams, employees, and value-added products and services of Meritain Health and CBSA PERFORMAX. Both of our companies are completely committed to helping our employees grow and succeed, and together we will continue to work tirelessly to reward our clients for their confidence in us." Meritain Health and CBSA PERFORMAX have had an excellent relationship for the past eight years, as Meritain Health has provided claims services for PERFORMAX clients. The combination strengthens both companies' objective of offering mid-size employers comprehensive, fully integrated health benefit services, including the design of customized, flexible plans that incorporate advanced cost management strategies. Mr. Cooperstone added, "Health care is a local issue and to be successful in today's rapidly evolving health care environment, we need to be where our clients are. That's why we're committed to delivering our services via regional processing centers and locating our sales and service offices close to our clients. The combination of Meritain Health and CBSA PERFORMAX will benefit our clients by creating one of the most extensive footprints in our industry." Meritain Health also announced that Ian Gordon has been named President and Chief Operations Officer, and Steve Adamson has joined the company as Senior Vice President and General Manager of the Minneapolis office. Mr. Gordon was formerly Chief Operations Officer of Concentra Network Services, and Mr. Adamson most recently was Vice President-Enterprise Business Operations at USAA. Goldman, Sachs & Co. arranged financing for the transaction. About Meritain Health Meritain Health is the country's largest independent provider of services for self-funded health plans. Meritain Health serves over 1,400 self-funded clients and over a million members nationally. The company provides plan administration, innovative wellness, medical management, disease management, network management, and cost management services. Meritain Health is also a pioneer and now the leading independent provider of Consumer Directed Health Plans. Meritain Health employs over 1,350 people, with headquarters in Amherst, NY and regional offices in 28 cities across the country. http://www.meritain.com About Prodigy Health Group Prodigy Health Group is a health services holding company. Prodigy Health Group operating companies provide benefits management, total health management, provider network services and insurance services to self-funded employers, managed care companies and insurers. Prodigy Health companies serve over 3.5 million members across all industry sectors and Prodigy Health Group is continuing to pursue an aggressive growth strategy through synergistic health services acquisitions and organic growth. http://www.prodigyhealthgroup.com
SOURCE Meritain Health, Inc.
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